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Tag: Zimbabwe

  • Zimbabwe Tobacco Sales Surging After Slow Start

    Zimbabwe Tobacco Sales Surging After Slow Start

    Tobacco sales in Zimbabwe surpassed $310 million as marketing season deliveries accelerate following a rocky start. Volumes rose sharply to nearly 115 million kilograms compared to 67.6 million kgs a year earlier, despite light buying during the first two weeks of the season as buyers were slow to secure financing. The increase reflects stronger farmer participation and higher output, with most sales occurring through contract arrangements rather than auction floors.

    Despite the surge in volumes, average prices have declined to $2.70 per kg from $3.47 last year, indicating softer market conditions. Higher rejection rates also point to ongoing quality issues, though overall earnings have increased due to the significant rise in production and deliveries.

  • Zimbabwe Sees Tobacco Volumes Rise, While Prices Fall

    Zimbabwe Sees Tobacco Volumes Rise, While Prices Fall

    Zimbabwe’s tobacco deliveries to auction and contract floors have surged 83% year on year, earning farmers nearly $200 million since the marketing season opened on March 4, according to the Tobacco Industry and Marketing Board. A total of 67.2 million kg of tobacco valued at $197.7 million has been sold so far, up from 38.8 million kg worth $133 million over the same period last year.

    Despite the higher volumes, prices remain subdued, with the average price at $2.79/kg compared to $3.44/kg previously. Most of the crop — about 95% — has been sold through contract floors, with only 3.8 million kilograms sold at auction by self-financed farmers. The highest prices recorded this season were $5.75/kg on contract floors and $4.92/kg at auction, both below last year’s $6.30/kg peak.

    The Zimbabwe Tobacco Growers Association said farmers are receiving payments on time as required under Statutory Instrument 77 of 2022, though high production costs and multiple levies continue to squeeze earnings.

  • Zimbabwe Working to Stabilize Tobacco Market After Rocky Start

    Zimbabwe Working to Stabilize Tobacco Market After Rocky Start

    Zimbabwe’s Tobacco Industry and Marketing Board (TIMB) said it is working to stabilize the market as the 2026 season has gotten off to a rocky start, with early prices plummeting due to global oversupply and slow buyer participation. After two weeks, the average price had dropped 24% from last season to $2.66 per kg, with some bales selling for as little as 10 cents per kg.

    TIMB chief executive Emmanuel Matsvaire said several major merchants, who fund 85% of the crop, had not finalized their credit facilities by the time the market opened, creating a void of competition that allowed prices to bottom out. With those companies back in the fold, Matsvaire said the increased participation is helping prices trend upward. The board is also emphasizing better market intelligence to align Zimbabwe’s production with global demand, aiming to restore confidence among the country’s 100,000-plus growers

    Coming out of a record-shattering 2025 season where it produced 355 million kg of tobacco, Zimbabwe encouraged farmers to push for a national output of 400 million kg this year. However, China, the largest consumer of Zimbabwean leaf, reportedly lowered its orders by more than 10 million kg, sending TIMB to aggressively seek new export markets in the Middle East, Africa, and EU.

  • Zimbabwean Farmers Ordered to Destroy Tobacco Stalks

    Zimbabwean Farmers Ordered to Destroy Tobacco Stalks

    Zimbabwe’s Tobacco Industry and Marketing Board “strongly encouraged” tobacco growers to destroy stalks promptly after harvest to prevent the carryover of pests and diseases into the next production season. Under the Plant Pests and Disease Act (Chapter 19:08), farmers are required to uproot all living tobacco plants, including roots, by May 15, with fines or imprisonment for non-compliance. TIMB emphasized that simply cutting or slashing stalks encourages regrowth, which can harbor pests, spread disease, and deplete soil nutrients, threatening both crop yields and the broader tobacco industry.

    To reinforce compliance, stakeholders have suggested linking funding access for the next crop to proper stalk destruction, while grower associations are conducting awareness campaigns on the risks of non-compliance. First-time offenders face a $100 fine, with repeat offenders facing higher fines or imprisonment. Some farmers have also been flagged for growing crops from the same family as tobacco on the same land, a practice prohibited under the regulations.

  • Zimbabwe Orders Buyers to Get Active as Tobacco Market Starts Slow

    Zimbabwe Orders Buyers to Get Active as Tobacco Market Starts Slow

    Zimbabwe’s government ordered licensed tobacco merchants who have not yet participated in the 2026 marketing season to begin buying within 14 days or face regulatory action, amid concerns that low buyer turnout has contributed to weak auction prices. The directive from the Tobacco Industry and Marketing Board requires non-participating merchants to explain their absence and outline planned purchase volumes to ensure competition in the market. Only seven of 43 registered buyers were active during the opening days of the season, prompting some farmers to withdraw bales while waiting for better prices.

    Officials say the market is currently in its price-discovery phase and expect prices to firm as more buyers enter the floors and competition increases, however, farmers are concerned as early-season figures show auction sales significantly lagging behind last year. As of March 5, 626,742 kg of tobacco had been sold for $1.79 million compared with 1.24 million kg worth $4.17 million during the same period in 2025. The average price also dropped to $2.85 per kg from $3.35 a year earlier.

  • Zimbabwe Assures Farmers as Tobacco Prices Begin Stabilizing

    Zimbabwe Assures Farmers as Tobacco Prices Begin Stabilizing

    The Tobacco Industry and Marketing Board (TIMB) has reassured Zimbabwean tobacco farmers that market prices are stabilizing following an early-season shock where some bales sold for as little as $0.35 per kg, despite the first bale fetching $4.60/kg. TIMB attributed the sharp early declines to a global oversupply of tobacco, the early opening of sales floors, and limited initial participation by buyers, rather than any structural market distortions.

    With the opening of contract floors, including Northern Tobacco, prices have begun to recover, and no complaints from growers were reported during the latest auctions. TIMB emphasized its mandate to protect farmer welfare, pledging to monitor the market closely and prevent conduct that could harm competition or disadvantage growers, urging farmers to allow normal market dynamics to restore stability as broader buyer participation continues.

  • Zimbabwe’s 2026 Tobacco Season Opens 

    Zimbabwe’s 2026 Tobacco Season Opens 

    Zimbabwe officially opened its 2026 tobacco marketing season yesterday (March 4), with Finance Minister Mthuli Ncube saying that Zimbabwe continues to establish its position as a global player in tobacco production, with the objective to not only grow volumes but also increase domestic production. “Value addition and beneficiation will be increased from 11% to 30% by creating an enabling environment for local processing of cut rag cigarettes and other tobacco products,” he said.

    The opening marked the government’s launch of its Tobacco Value Chain Transformation Plan II (2026–2030), a five-year strategy aimed at boosting value addition in the key export sector. The plan seeks to enhance productivity, sustainability, and farmer resilience through climate-smart agriculture, irrigation, mechanization programs, and the localization of up to 70% of tobacco production financing. It also aims to diversify export markets under the African Continental Free Trade Area.

    The first bale for the 2026 season sold for $4.60 per kg, slightly below last year’s $4.65. 

  • TIMB Keeping Tobacco Money Home, Limiting Unregulated Sales

    TIMB Keeping Tobacco Money Home, Limiting Unregulated Sales

    With 67% local financing in place, Zimbabwe has nearly reached its goal of reducing reliance on offshore funding that limits domestic tobacco value retention, according to the Tobacco Industry and Marketing Board (TIMB). TIMB set the goal of 70% local financing, as officials estimate that under external financing models, for every U.S. dollar financed, only 12 cents remains in the country. Tobacco remains the country’s largest agricultural export and second-largest foreign currency earner after gold, generating about $1.2 billion last year.

    Tobacco output exceeded expectations last year, reaching 355 million kg against a 300 million kg target, with projections of around 400 million kg this year, with more than 90% of tobacco under contract arrangements. While production growth has been strong, value addition remains subdued at 10.78% against a 30% target.

    TIMB has also introduced tougher penalties and a biometric grower management system ahead of the new marketing season, significantly raising fines for regulatory breaches. Farmers caught engaging in side marketing will be fined $50 per bale, up from $20, while merchants purchasing such tobacco will pay $200 per bale. Illegal buying point operators, known as “Makoronyera,” risk fines of up to $2,000.

    TIMB confirmed that 48 contractors and 46 Class A buyers have been licensed for the 2026 season, with grading categories streamlined to enhance global competitiveness amid evolving climatic and market conditions. Five firms were barred over compliance issues.

  • Ethical Holdings to Produce 8M Cigarettes per Month

    Ethical Holdings to Produce 8M Cigarettes per Month

    Zimbabwe’s Ethical Holdings will begin producing cigarettes under a toll manufacturing arrangement with a Chinese partner, a move aimed at boosting local beneficiation and maximizing export earnings from the golden leaf. The initiative aligns with the government’s Tobacco Value Chain Transformation Plan, which emphasizes shifting from raw leaf exports to high-value local manufacturing.

    Already a major player in tobacco farming and leaf processing, Ethical Holdings will produce 8 million sticks per month, marking its transition into a fully integrated tobacco company controlling the full value chain from primary production and auctioning to finished products. General Manager Tendai Ngongoni said the move supports national value-addition goals.

  • Tech Hopes to Get Zimbabwean Tobacco Farmers Paid in Minutes

    Tech Hopes to Get Zimbabwean Tobacco Farmers Paid in Minutes

    Tobacco farmers in Zimbabwe are now expected to receive payment within 30 minutes of concluding sales as the 2026 marketing season opens March 4, a major technological advancement for the sector. Traditionally, growers faced delays of up to two days or more under Statutory Instrument 77 of 2022, but a fully integrated digital system linking the Tobacco Industry and Marketing Board (TIMB) platform to auction floors allows real-time tracking of every bale, instant dispute resolution, and rapid electronic payment confirmation. Deputy Minister Vangelis Haritatos said the system sets a new benchmark for agricultural efficiency, encouraging more farmers to participate, including in dryer regions of Matabeleland. Operators at the Tobacco Sales Floor (TSF), Premier Tobacco Auction Floor (PTAF), and Ethical Sales Floor (ESF) confirmed readiness, with upgraded logistics, bank integrations, and biometric systems to curb side marketing and enhance traceability, while TIMB strengthened online monitoring to ensure transparency and smooth operations throughout the season.